New for 2021 – Increased Conforming Loan Limits
Thinking about buying or selling a home in 2021? Here at HOAG REAL ESTATE, we expect increased buyer demand for more homes in the $550,000 to $700,000 price range. Why? Because the Federal Housing Finance Agency recently announced increases to its national conforming loan limits.
New Conforming Loan Limits
- 3% down – $565,200 purchase price
- 5% down – $577,100 purchase price
- 10% down – $609,166 purchase price
- 20% down – $685,300 purchase price
What are conforming loans?
A so-called “conforming loan” is one that is equal to (or lower than) the limits outlined above and that meets the Freddie Mac and Fannie Mae funding requirements.
Why do conforming loans matter?
For home buyers with good credit, a conforming loan is likely to be a very attractive option as it has a low (and fixed) interest rate. Banks and lenders also prefer to offer buyers conforming loans as they are easier to repackage and sell on the secondary mortgage market.
Why do I need to be aware of these new conforming loan limits for 2021?
Whether you’re buying or selling a home, these changes to conforming loan limits may drastically affect the supply and demand of available properties in 2021. As a home buyer, if you are qualified for a conforming mortgage, you’ll now be able to qualify for higher-priced properties than you were a year ago. As a home seller, you should be aware that more money is available to qualified buyers.
At HOAG REAL ESTATE, our buyers’ and sellers’ agents are available to help answer your questions about conforming loans.
As a home buyer, is a conforming loan right for me?
If you qualify for a conforming loan, it can be an excellent opportunity. Because of the increased limits for 2021, you’ll be able to make competitive offers on properties in our area’s hot real estate market. However, if you’re in the market for a luxury home with a value above the $685,300 limit, then a conforming loan likely won’t work for you.
Get an agent you trust to work for you
Thinking about buying or selling a home in 2021? Contact HOAG REAL ESTATE to speak with one of the Portland area’s most experienced and most trusted real estate agents.